Investor loss in 2008 crosses $500 bn mark

PTI|

Mar 13, 2008, 08.45 PM IST

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MUMBAI: Over $500-billion have been wiped off from the wealth of investors in Indian stocks since the beginning of 2008 as an unending turbulence today sent the market to its lowest level in about six-and-a-half months.

The total loss of about Rs 20,50,000 crore (506 billion dollars) include over 300 billion dollars of promoters of the listed companies here, while public shareholders have lost close to 200 billion dollars.

According to the latest data available with stock exchanges, the total market capitalisation of all the listed companies in India stood at about Rs 51,22,000 crore (about 1,270 billion dollars) after the benchmark Sensex recorded its seventh-biggest loss of 770 points in a broad-based plunge.

The total loss since the beginning of this year accounts for more than one-quarter of the investors wealth.

During this period, more than 2,500 companies have seen their market values erode, while less than 100 have managed to register some gains.

Besides, the country's ten most valued companies, including Reliance Industries and ONGC, alone have lost about Rs five trillion (over 125 billion dollars) so far in 2008.

The total market value of these ten companies stood at Rs 14,94,500 crore at the end of today's trading, as against Rs 20,21,700 crore as of December 31, 2007.

Among these companies, Reliance Industries alone has lost close to Rs 93,000 crore, while the country's most valued real estate firm DLF has seen its market value plunge by close to Rs 80,000 crore. Besides, public sector giants ONGC, NTPC, MMTC and Anil Ambani group's Reliance Communications have lost more than Rs 50,000 crore each.

Companies such as Bharti Airtel, NMDC and ICICI Bank also lost close to Rs 40,000 each, while the country's biggest lender SBI has seen about Rs 18,000 crore being wiped off from its market capitalisation in this period.

The 30-share benchmark Sensex today fell 770.63 to close at 15357.35 points - which is not only the lowest level in 2008 but also the lowest closing since August 31, 2007.

The market capitalisation of all the listed firms sank by close to 80 billion dollars (about Rs 3,25,000 crore) on Thursday.

Only one of the 30 Sensex companies today managed to close with a modest gain, while the overall market breadth was highly negative. There was just one gainer for about 15 stocks closing in the red today as just about 12 per cent of total actively traded stocks could manage to end in the green.

The Sensex has dropped by about 4,925 points so far in 2008, which accounts for more than 75 per cent of its gain registered in entire 2007.

The Sensex had risen 6,500 points in 2007 to end at 20,286.99 points.

In terms of the market capitalisation also, the loss incurred since the beginning of 2008 accounts for about 60 per cent of the total gain in 2007. The market capitalisation of all the listed companies had increased by Rs 35,45,626 crore in 2007 to end the year at Rs 71,69,985 crore.